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Mutual Funds With Low Minimum Investments

By JLP | November 13, 2007

Here’s a list (check it out here ($) I found in today’s Wall Street Journal of some mutual funds that have low minimum initial investments. All funds listed are supposed to be no-load mutual funds with relatively low management expenses. Where available, I included a link to the mutual fund’s website.

NOTE: Upon further research, I think this list was based on this article ($) in Smart Money.

Elfun International Equity (EGLBX)
Minimum Initial Investment: $500
Management Expense Ratio: .18%

CG Capital Markets Large Cap Growth (TLGUX) – Minimum Initial Investment: $100
Amana Income (AMANX)
Minimum Initial Investment: $250
Management Expense Ratio: .77%

Amana Income (AMAGX)
Minimum Initial Investment: $250
Management Expense Ratio: 1.37%

Amana Growth (AMANX)
Minimum Initial Investment: $250
Management Expense Ratio: 1.36%

State Farm Growth (STFGX)
Minimum Initial Investment: $250
Management Expense Ratio: .12%*

Excelsior Blended Equity (UMEQX)
Minimum Initial Investment: $500
Management Expense Ratio: 1.10%

Schwab Health Care (SWHFX)
Minimum Initial Investment: $100
Management Expense Ratio: .84%

Hodges (HDPMX)
Minimum Initial Investment: $250
Management Expense Ratio: 1.42%

State Farm Balanced (STFBX)
Minimum Initial Investment: $250
Management Expense Ratio: .13%*

Pax World Balanced (PAXWX)
Minimum Initial Investment: $250
Management Expense Ratio: .94%

*These expense ratios seem extremely low to me. I’m going to investigate this further.

UPDATE: I sent the author of the article and email and asked him about the expense ratios for the State Farm funds. This was his reply:

We debated whether to include funds like State Farm and Elfun on our tables, since they are only open to company employees, for the most part. But in these cases, the funds have such a large shareholder base, good performance and low fees that we felt compelled to include them. In the future, though, we are going to put an asterisk next to such funds.

Topics: Investing, Mutual Funds | 9 Comments »


9 Responses to “Mutual Funds With Low Minimum Investments”

  1. Dylan Says:
    November 13th, 2007 at 7:10 pm

    I believe that those State Farm funds are only offered to employees and agents of State Farm and are not available to the general public.

  2. Fred Says:
    November 13th, 2007 at 7:54 pm

    I’m a SF employee and Dylan is correct.

  3. JLP Says:
    November 13th, 2007 at 7:54 pm

    Dylan,

    I think you may be right. I couldn’t find any information on them.

  4. mickeykool Says:
    November 13th, 2007 at 8:07 pm

    What does Management Expense Ratio mean?

  5. JLP Says:
    November 13th, 2007 at 8:36 pm

    mickeykool,

    I guess a better term for it is Total Operating Expense, which is the total annual expense charged to investors each year (in addition to any loads or redemption fees). The total operating expense ratio includes:

    management expenses
    12(b)-1 fees
    “other” expenses

    Hope this helps.

  6. JimmyDaGeek Says:
    November 16th, 2007 at 11:01 am

    What good is it to put money into a mutual fund with low minimum investments if it does not perform as well as an equivalent index fund or ETF? I suppose you can use it as a springboard to accumulate enough money so that you can afford a more “expensive” better-performing fund.

  7. Build & Succeed - My Personal Finance Blog » Top 5 Personal Finance Links Says:
    November 26th, 2007 at 2:43 pm

    [...] Mutual Funds with Low Minimum InvestmentsĀ  here’s a nice list of mutual funds by JLP at AllFinancialMatters with very low minimums and low expenses, as well. If you don’t have a lot of cash to put down right now but want to get started this is a great list to check out. [...]

  8. Mutual Funds with Low Investment Says:
    November 27th, 2007 at 2:40 am

    hi all, i would like to share this link, i found : http://www.clickindia.com/services/financial-legal-services/investment/… which really helped me to invest my money with low & min. investment option to get higher interest rate…

  9. Moneybee: Top mutual fund schemes to invest Says:
    November 29th, 2007 at 11:00 pm

    Hi, Most mutual fund schemes in India require investment as low as Rs 1000 per month for SIP and Rs. 5000 for lump sum investments.

Comments